Inflation measures provide key data points for the Fed in deciding on the timing and the magnitude of taper. Last week’s PPI and today’s CPI numbers continue to show a fairly benign inflation environment.Source: EconodayHowever CPI and similar measures…
US inflation measures continue to decline. Government data showed that both the headline and the “core” PCE (excluding food and energy) indicators fell last month. Moreover, the core index hit the lowest level since this data has been collected, starti…
Well, we got an inflation target from the Fed. Basically, thinking at the Fed has been eliminated. The process has been automated. Bernanke has convinced the Fed board to adopt Core PCE as a determinate of monetary policy. So long as CPCE stays below 2…
May 15, 2011
Note from dshort: I’ve now update the charts below with the latest Consumer Price Index data from the Bureau of Labor Statistics. The annualized rate of change is calculated to two decimal places for more precision in the side-by-side …
May 13, 2011
Here is a table showing the annualized change over the past four months for Headline and Core CPI. I’ve also included each of the eight components of Headline CPI and a separate entry for Energy, which is a collection of sub-indexes in …
May 13, 2011
The Bureau of Labor Statistics released the CPI data for March this morning. Year-over Headline CPI came in at 3.16%, which the BLS rounds to 3.2%, up from 2.68% last month. Year-over year-Core CPI came in at 1.33%, which the BLS rounds…
May 12, 2011
Today’s release of the Producer Price Index (PPI) for April again reinforces the pattern of higher inflation. The year-over-year unadjusted producer price increase was the largest since September 2008:
The Producer Price Index for f…
The Fed likes to strip out the prices of things that are rising in price when it measures inflation, focusing on the “core rate”, rather…